9911796707
TMI Blog1981 (5) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... yr. 1962-63. However, the partners of the firm made a settlement petition before the CIT, Jaipur, for the determination and settlement of the tax liability of the said firm in respect of the profits derived by it. The CIT made an order on 29th March, 1975, on the settlement petition filed by the firm. 4. On the determination of the tax liability of the firm under the order passed by the CIT on the settlement petition the assessee contended that the additional tax payable by the assessee in pursuance of the settlement order made by the Commr. should be deducted as a "debt" in computing the net wealth of the assessee for the assessment years under consideration. The claim made by the assessee was rejected by the WTO. 5. Before the AAC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rising out of the settlement order, on a parity of reasoning the WTO should have also allowed the claim of the assessee in relation to the additional sum of Rs. 16,550 demanded from the assessee personally in pursuance of the settlement petition. In relation to the remaining amount i.e. Rs. 24,338 minus Rs. 16,550 Rs. 7,788, the AAC observed that this liability related to 50 per cent of the tax payable by the firm in pursuance of the settlement order made by the CIT. The AAC held that as the aforesaid amount was attributable to the assessee's share in the unaccounted profits of the firm, the aforesaid tax liability had to be deducted in computing the net wealth of the assessee. hence, following the principles laid down in the aforesaid deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is to be allowed in respect of taxes as finally determined on assessment and not the taxes as per return. The additional tax payable by the assessee in pursuance of the settlement order made by the CIT has also to be necessarily regarded as a part of tax determined on the assessment of the assessee after including in his total income as assessed previously the additional share of profits determined in pursuance of the settlement order. The principles laid down by the Gujarat High Court in the above mentioned case would, therefore, also support the claim of the assessee. 10. In relation to the sum of Rs. 7,788 being 1/2 of the tax payable by the firm in pursuance of the settlement order, we are of the opinion that as the firm had ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
